Covert and informal talks have taken place in a number of foreign states, including Italy and Norway, for the past two months, officials in Tripoli said.

The claims, which have been strongly contested by the rebel leadership, come amid growing speculation that Libyan representatives on both sides are increasingly convinced that the stalemate can only be broken through negotiations.

Khaled Kaim, Libya's deputy foreign minister, said in Tripoli that progress had been made "in some areas" but hopes for a breakthrough had been dashed because of unspecified Nato obstructions.

"The only part we have to blame here is the Nato," he said. "Some member states of Nato don't support talks between the government and the rebels. That is the reason why there has been come delay in the outcome of the talks."

The National Transitional Council, the rebels' de-facto government in Benghazi, has consistently denied any negotiations are taking place.

Italy also challenged Libyan claims that it had facilitated talks or that any had even taken place on its soil, while a western diplomatic source said that if there were any negotiations, they did not amount to anything serious.

"We will never surrender," he added. "We will fight. It is our country."

Yet, for all the fiery rhetoric on both sides, it is not inconceivable that elements on both sides are putting out feelers.

The Libyan government conceded that talks were only being held with individuals in the Council – rather than the whole body – among them Abdel Fattah Younes al-Abidi, the former security minister who defected early on in the uprising.

Some opposition tribal leaders and members of the Muslim Brotherhood are also said to be involved.

From a tactical perspective, Col Muammar Gaddafi may be hoping that negotiations will both undermine already fragile rebel unity while also persuading senior opponents fretful that they made the wrong choice by joining the uprising to return to his embrace.

Yet some observers have suggested a broader desire in rebel ranks to seek a negotiated settlement with Col Gaddafi, pointing to an alleged slowdown in the opposition's military offensive as evidence.

With public popularity for Nato's air campaign dwindling in a number of member states, some western officials may hope that a peace deal could be feasible.

Fighting on three fronts, the rebels seem unable to capture and hold any territory where there is notable sympathy for the regime. Liam Fox, the defence secretary, yesterday warned that Col Gaddafi's fall "could take some considerable time yet."

"I'm afraid I think the chances of the opposition forces entering Tripoli is unlikely in the near future," he told the House of Commons.

William Hague, the foreign secretary, following a meeting with the African Union Commission chief, reiterated that Gaddafi “cannot be part of the negotiation process, and that there must be a transfer of power”.

In an attempt to bolster the rebels, France has admitted airdropping weapons to Berber tribesmen in the Nafusa Mountains, the closest rebel front line to Tripoli, but advances made last week appear to have faltered.

The Libyan regime on Monday showed off a boat it claimed to have seized carrying Qatari weapons to the rebels in the Nafusa, saying they were to be delivered by intermediaries. They claimed they had arrested 16 rebels on the boat, which carried roughly 1,000 rifles, and accused Nato, Tunisia and Qatar of being involved in the operation.